| If you are in the business of selling and installing engines,
pay close attention to the way your estimates are written. According to Section 9884.9
of the Business and Professions Code, an estimate must list a specific job with a specific
price for that job. Each year, the Bureau of Automotive Repair receives hundreds of
consumer complaints related to price quotes for rebuilt engines. Consumers believe they
are getting an engine for a certain price, only to discover that their original engine
cannot be rebuilt and that the total cost has gone up substantially.
There are only two choices when entering into this type of transaction. One option is
use of the "tear down" estimate. The other is delivering the product for a
stated price. A "tear down," as described in Section 3353{b) of Division 33 of
the California Code of Regulations, is used to determine the condition of a component in
order to prepare a complete estimate. This way a customer knows exactly what has to be
done, along with the total cost.
So, when you write estimates or advertise for engines with a price based upon a
rebuild able core, think carefully about your approach. You may have committed yourself to
replacing the engine at the original agreed-upon (estimated) price, regardless of the
core's condition.
To get more information about the proper procedures for writing a "tear down"
estimate, consult Section 3353 of the California Code of Regulations or contact one of the
BAR field offices.
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